Diageo profit shows slight drop

Diageo has announced continued growth across all key measures with organic growth of 3% volume, 5% growth in net sales and 8% growth operating profit before exceptional items in the first half of fiscal 2005.

Operating profit before exceptional items was £1.192bn (€1.724bn), up 1% on the previous year’s figure of £1.181bn (€1.707bn).

However, profit was down from £891m (€1.289bn) to £869m (€1.256bn).

Chief executive Paul S Walsh said: “We have made a good start to the year and we can maintain our full year guidance of 6% organic operating profit growth despite absorbing an increase in the cost of executing additional productivity initiatives in the second half."

Diageo begins its day’s trading on the ISEQ at €14.42.